Now Reading: India retail inflation holds steady at 4.45% in July
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India retail inflation holds steady at 4.45% in July
India’s retail inflation, as measured by the Consumer Price Index (CPI), stood at 4.45% in July, barely changed from June’s 4.38% and in line with analyst expectations of 4.5%. The steady reading…
The Story in Brief
India’s retail inflation, as measured by the Consumer Price Index (CPI), stood at 4.45% in July, barely changed from June’s 4.38% and in line with analyst expectations of 4.5%. The steady reading vindicates the Reserve Bank of India’s Monetary Policy Committee, which last week ruled out widespread inflationary pressure. Underlying data shows rising food and fuel prices offsetting subdued core inflation. Food inflation climbed from 2.1% in January to 5.2% in July, while transport fuel inflation rose to 7.55% from near zero. Core inflation remained flat at 4% in July.
The Indian Opinion
The usual clamour around inflation masks a simple truth: the latest numbers are driven by food and fuel, not demand-side overheating. Those who see a panic-worthy trend from near-zero in October 2025 to 4.45% now ignore that base effects and administered price hikes, not runaway demand, are at play. The RBI is right to pause. The real test will come with the next two quarterly readings: if food inflation does not ease with the harvest, even a core-steady RBI may have to rethink its stance.
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
